Home > Uncategorized > Low Canadian Dollar Exceeded 2016 Forecast

Low Canadian Dollar Exceeded 2016 Forecast

When the value of the Canadian dollar against its U.S. counterpart started dropping noticeably in the first quarter of 2016, economists predicted some recovery to happen before or after Christmas. We now know that didn’t happen.

In an industry where list prices are determined by conversion rates, it’s easy to say that a better dollar might kickstart better sales. That’s true in many cases, particularly some higher price books (i.e. $17.99 and $18.99US paperback titles) and also some lower priced items (i.e. some $3.99US things that work at $4.99CAD but start to look overpriced at $5.50CAD). But it also true that some of the most significant bankruptcies and closures in Canada happened when our dollar was high.

Remember, a low U.S. dollar would immediately devalue much of your existing inventory, especially things purchased in the last 15-16 months.

Be careful what you wish for. A slow movement back to something like a 1.2500 conversion rate would be nice. But don’t skimp on inventory waiting for something which might not happen.

Instead, shop for deals and packages which qualify you for extra discount points. Consider discounting some product yourself in-store, rather than waiting for a distributor flyer. And seriously consider empowering your sales associates to have some power to barter. Yes, I know that’s scary! But we do it in our store with one employee and have yet to regret it.

The idea is to keep customers coming and keep them satisfied!

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